Sunday, February 8, 2009

Hiring your First Financial Consultant with Trust

By Paul J. Easton

Everyone has different financial needs at different stages in their lives. These different stages require different financial needs too. Get started with your investments as early ijn life as possible. Look for your first financial consultant. When looking for a financial consultant, always find a consultant that matches your area of interest.

Personally, I don't recommend hiring your first financial consultant without meeting him or her. Although it may take some time from your part, it is absolutely necessary to get to know your financial consultant in a personal way, especially with your first one. According to a world-renowned investor Warren Buffett, it is always customary to ask oneself these three questions after meeting with a party or company to invest with. "Do I like their company? Can I trust them? Do I respect them?" These questions should be applied to hiring your financial consultant too.

Okay, so how can you find a person to trust? There is no perfect method because it is always up to the individual. Be on the lookout for these warning signs that will give you indications of a reputable financial consultant.

First thing you deal with your consultant is how they will be evaluated with their performance. Ask them some information from topics you researched on your financial objectives. Ask for their opinion to know how knowledgeable they are with their field. You only ask for information you have already an idea with. See if they tell you information misleading you along the way. This will be a good test to gauge their credibility.

Always clarify things in terms of the fees and the payment method. In addition to that, you just need to find a financial planner you are comfortable with. You are the client and you are in charge. Never go with the smoothest talking guy. Find a person who is warm and is willing to sit down with you and walk you through everything. This person will teach you with what is really going on later.

This is a process where you should be very keen with managing your expectations and finding the right person to fit the job. Since this will be one of the largest commitments you are going to undertake in your life, you have to simply take the time. Choosing the right financial consultant will take some of your time and effort. As one of the best moves for the future, play your cards well and get the best minds behind your investments. After finding this first consultant, develop a professional relationship, it will sure be worth it.